The South Indian Bank (SOUTHBANK) investor relations material

Executive summary

• Q2 FY27 net profit reached a quarterly record ₹426 crore, up 21% YoY; total business grew 19% to ₹2,46,796 crore.

• Strategic priorities include portfolio resilience, branch productivity, cost optimization, non-branch distribution and partnerships, and stronger controls.

Financial highlights

• Q2 FY27 NII reached a quarterly high of ₹1,116 crore, up 38% YoY; operating profit rose 37% to ₹732 crore.

• Deposits rose 19% YoY to ₹1,37,279 crore; gross advances rose 19% to ₹1,09,517 crore, or 20% excluding the prior-year ₹1,163 crore technical write-off.

• H1 FY27 NII increased 30% YoY to ₹2,140 crore; PAT rose 19% to ₹804 crore.

• Q2 provisions and contingencies were ₹159 crore, up 152% YoY; other income declined to ₹468 crore from ₹516 crore.

Outlook and guidance

• FY27 loan and deposit growth guidance remains 15%-16%; management expects performance toward the higher end and aims to outpace market growth where possible.

• NIM guidance is 3.36%-3.38% near term and 3.45%-3.50% over the next 12 months; the longer-term ambition is 3.40%-3.50%.

• ROA targets are 1.25%-1.30% medium term and 1.5% long term; management expects movement toward 1.20%-1.25% within roughly a year.

• Expansion plans include co-lending and asset partnerships, fintech-led deposit acquisition, digital loans and deposits, and secured credit lines on UPI.